AlabamaGroceryJan2017Final

Alabama

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A L A B A M A G R O C E R S A S S O C I A T I O N

CREATIVITY DRIVES the new shopping experience

CONTENTS | ISSUE 1

FEATURES

COLUMNS

Chairman’s Message Try Something New, Get Involved . . . . . . . 6 President’s Message The Association Working For You . . . . . . . 8 Government Relations 2016: A Year to Forget .. . . . . . . . . . . . . . . . 10 Inside the Beltway Looking Ahead .. . . . . . . . . . . . . . . . . . . . . 14 Washington Report Good News for Independants . . . . . . . . . . 18 Viewpoint Hardball Retail Lessons .. . . . . . . . . . . . . . 20

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One Smart Cookie Congratulations to Bud Cason, founder and chairman of Birmingham-based Bud's Best Cookies on his induction into the Baking Hall of Fame this February by the American Society of Baking.

New Column: MOMMY B L O G G E R

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Insights into one of your most important customers: Moms.

Creativity Drives the New Shopping Experience A leading futurist has a word of warning for the grocery industry: start addressing the threat of online competition or you could end up as “Blockbusters in a Netflix world.”

DEPARTMENTS

Outside the Box New Retail Perspectives .. . . . . . . . . . . . . . 22 15 Minutes With… Eric Saperston. . . . . . . . . . . . . . . . . . . . . . . 36

Everyone Likes a Good Story Consumers are increasingly being romanced by the stories that products are telling about their origin, ingredients or inspiration. Mintel Global Food & Drink Analyst Patty Johnson explains why everyone loves a good story. 30

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AGA | BOARD OF DIRECTORS

Chairman of the Board Peter "Greg" Gregerson Gregerson's Foods Vice Chairman Frank D'Amico, III BTC Wholesale Distributors

Past Chairman Jack Howell Forster & Howell Treasurer Darwin Metcalf Western Markets

Secretary Bo Taylor Coca-Cola Bottling Company United, Inc.

Sergeant-at-Arms James Cochran Buffalo Rock Co./Pepsi

executive committee

vice presidents David Bullard

Harold Garrett Gateway Foods Keith Lusk Golden Flake Snack Foods

Jay Mitchell Mitchell Grocery Corporation Wade Payne Food Giant

Piggly Wiggly Alabama Distributing Company

directors Stan Alexander

Bob Crawford United Johnson Brothers Bill Davis A&R Supermarkets Bob Durand Associated Wholesale Grocers John Fargason Acosta Sales & Marketing Mark Gallivan Alliance Sales & Marketing

Robert Gamble Bunzl Distribution

Austin Peake Peake & Associates Eddy Quinley Advantage Solutions

Associated Grocers of the South Jack Carlile SuperValu Kirk Clark Mitchell Grocery Corporation Mike Coggins Sherwood Food Distributors

Julie Anderson Goolsby The Hershey Company Kris Jonczyk Publix Super Markets, Inc. Curtis Lyons, Jr. Flowers Baking Company Mike O'Shell Rouses Enterprises

Dana Weldon Dutch Farms John Wilson Super Foods Supermarkets

Johnny Collins Barber's Dairy

ex-officio board members

Mike Fuller Fuller's Supermarket

R. Kevin Miller Acosta Sales & Marketing

Mac Otts Autry Greer & Sons

James Scott Lighting Specialists

Vice Chairman Tom Keller Associated Grocers of the South

President Elle Smotherman Taylor Alabama Grocers Association

Secretary/Treasurer Phillip Davis A&R Supermarkets

Board of Trustees Chairman Jay Mitchell

Mitchell Grocery Corporation

Jimmy Freeman Freeman's Shur Valu Larry Garrett Vietti/Southgate Foods Kevin Gillespie Acosta Sales & Marketing

Ken Hestley Sell Ethics Mike Oakley Alabama Power Company Steve Mulford Royal Foods

Dan Richardson Coca-Cola Bottling Company

Paul Burnett Byars | Wright Ronnie Cook Bimbo Bakeries Chris Crosby Golden Flake Snack Foods

United, Inc. Brian Smith Community Coffee

Cliff Thomas Snyer's Lance

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WE ARE HERE FOR YOU!

Great Lakes

Norfolk

Kansas City

Fort Scott

Springfield

OKC

Nashville

Memphis

Southaven

Fort Worth

States with distribution centers States with distribution

Gulf Coast

States with no current distribution yet

Largest Retailer-Owned Grocery Co-Op in the U.S. Over 30 states Over $10 Billion in Sales Over 3,800 Retailer Locations

For a lower cost of goods PLEASECONTACT: DaveMcKelvey713-876-6240 KeithKnight 615-290-6093 WayneHall 608-347-7318

CHAIRMAN' S MESSAGE

T RY S OME T H I NG N EW, G E T I NVO LV E D

PETER GREGERSON, JR. GREGERSON'S FOODS AGA CHAIRMAN OF THE BOARD

ideas with others in the food industry and enjoy great fellowship, and top name entertainment. How to be involved: There are many opportunities for you and your company to be involved. First and foremost, you need to register and attend for the events. This will allow you maximum time to visit with your other AGA members. Your company could have a booth in the exhibit hall, sponsor an event or even advertise in the yearbook. You could volunteer your time during the event to help the Association staff. Anything from helping hand out door prizes to serving on the Silent Auction Committee and assisting them with raising money for the foundation. Volunteer to help the staff pack goody bags, load the van, organize items before the Convention. Event: October 19 – Alabama Grocers Education Foundation, Inverness Country Club, Birmingham, Alabama Purpose: All the monies raised at this event go to fund educational sessions for our members and fund scholarships for AGA employees and children of AGA employees for college. How to be involved: Sponsor a half hole or hole at the event. Come out and play a

As the new year begins so do many traditions such as resolutions, fresh starts and reflections.

While you are working hard this year, know that AGA continues to be passionate about the grocery industry in our state and is dedicated to continuing to find ways to help our members grow and be successful. Whether it is through providing education seminars, working with regulatory agencies on your behalf, providing opportunities to network or encouraging young people to continue their education through scholarship assistance, AGA and our members continue to be the voice of the grocery industry in Alabama. As 2017 begins, I would like to challenge each of you to try something new. Attend an AGA event you have never been to, volunteer for one of the golf outings, recruit a new member, find a way to get involved with your Association this year. Many members just pay their dues (which is great) but never truly experience all AGA has to offer. Below are the 2017 events and ways you can be more involved.

Event: April 6 – Alabama Grocers Education Foundation, Inverness Country Club, Birmingham, Alabama Purpose: All the monies raised at this event go to fund educational sessions for our members and fund scholarships for AGA employees and children of AGA employees for college. How to be involved: Sponsor a half hole or hole at the event. Come out and play a round of golf with other AGA members. Volunteer your time on April 6 to help the AGA staff run this event. Volunteer to pack goody bags in advance. Donate product for the meals at this event. Join us for lunch to mingle with other AGA Members. Event: July 23-26 – Alabama Grocers Association Annual Convention, Sandestin Golf & Beach Resort, Destin, Florida Purpose: Bring our industry together for a few days to hear professional speakers and seminars to help improve your knowledge and help you operate your business more effectively. You will have the opportunity for extensive networking, discussion and expanding

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CHAIRMAN’S MESSAGE

How to be involved: Be a sponsor of this event or attend the function. Promote this event among other AGA members and encourage them to attend and sponsor. Volunteer your time to help with setup before the event or help run registration the day of the event. As you can see from the list above there are many opportunities for you to be involved with your Association and learn more about what AGA does on a regular basis for our members. If you would like to be more involved behind the scenes, I would like to suggest: advertising in the digital magazine, recruit new members, help build our grassroots efforts by getting involved in the legislative aspect, have AGA facilitate a legislator at your store or office, attend the “Day in Washington”, find ways your company can provide additional benefits to our members such as offering webinars and industry information in our weekly market minute or help promote

round of golf with other AGA members. Volunteer your time on October 19 to help the AGA staff run this event. Volunteer to pack goody bags in advance. Donate product for the meals at this event. Join us for lunch to mingle with other AGA Members. Event: November 2 – Alabama’s Food Industry Finest Luncheon, The Club, Birmingham, Alabama Purpose: Bring our industry together to hear legislative speakers and top industry speakers, honor the Retailer, Wholesaler and Vendor of the Year and to raise monies for our SACK PAC (Political Action Committee). It is vital for AGA to be able to have funds to contribute to political campaigns and build relationships with political officials. When issues arise for our industry, it is important that we have people in key positions that are willing to hear our side of the issue and work with us.

our current benefits such as our 401K program, credit card program, coupon program, food safety manager training, etc. As your outgoing chairman this year, my goal would be to inspire each of you to find a new way to be involved with your Association, learn more about what AGA does for you and your company and continue to build and establish relationships within the grocery industry. We all have a common goal, to provide quality product and service at the best price to the consumers of Alabama. If we stick together we can continue to grow our Association and continue the positive work that has been done.

Mark Your Calendar!

Alabama Grocers Association 2017 Annual Convention

July 23-26, 2017 Sandestin Golf & Beach Resor t Miramar Beach, FL

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PRESIDENT’ S MESSAGE

t h e a s s o c i at i on wo rk i ng f o r yo u

ELLE SMOTHERMAN TAYLOR PRESIDENT ALABAMA GROCERS ASSOCIATION

There are many projects the Association works on during the year. In some cases, it takes several years for a project to come to Fruition.

by Senator Greg Reed. This bill passed in the 2015 Legislative Session and will provide financing for food retailers in low to moderate income areas of urban and rural Alabama. It also provides as a vehicle for private and public funding as well as the ability to receive federal grant funding and is housed under ADECA, the Alabama Department of Economic and Community Affairs. Projects eligible for financing include construction of new grocery stores as well as store renovations, expansion and infrastructure upgrades that improve the ability and quality of fresh produce and other healthy foods. Financing can be used for site acquisition and preparation, construction and build- out costs, equipment and furnishings, workforce training and security, pre- development costs such as market studies and appraisals, energy efficiency measures and working capital for first-time inventory and start-up costs. So now that SB260 passed in 2015, where do we go from here? We need to get it funded. In 2016, we passed resolution SJR105, to create the Healthy Food Financing Study Commission.

One such issue has been food deserts or underserved areas throughout the state of Alabama. Not only is this an issue in our state, but this is an issue nationwide that much research and effort has been dedicated

to help the citizens of our country, particularly those that are the most vulnerable. In November 2014, our Association in conjunction with Voices for Alabama’s Children and the Joseph S. Bruno Foundation, held a Food Summit to discuss the possibility of Healthy Food

Financing in Alabama and how we could use a variety of tools to bring this to our state. Over 40 representatives from the grocery industry, government and non-profit sector were in attendance. Through research and working with The Food Trust a report was created showing over 1.8 million Alabama residents, including nearly half a million children live in lower-income communities underserved by grocery stores. All this pre-work served as the catalyst to SB260, the Healthy Food Financing Act, sponsored

AGA President Elle Smotherman Taylor addresses Food Summit on the possibility of Healthy Food Financing in Alabama.

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PRESIDENT’S MESSAGE

“Our hope is that we can also get matching funds from private donors to increase the total HFFI to over $5 million.”

This Commission will present a report to the Legislature on why there should be funding for Healthy Food Financing in underserved communities. We know that in addition to increasing families’ access to healthy foods, new and improved grocery stores can help revitalize lower- income neighborhoods by generating foot traffic and will attract complementary services such as banks, pharmacies and restaurants, thus reducing poverty and crime. It also creates and maintains local jobs through new hiring opportunities and provides upgrades and renovations that help keep stores viable, helping to retain existing jobs in local communities.

We know this type of financing and projects will work. This type of model was first established in Pennsylvania with the state’s Fresh Food Financing Initiative. Seeded with $30 million, FFFI was designed to accommodate the diverse financing needs of large chain markets, family owned grocery stores, farmers’ markets and other food retailers. Pennsylvania’s program across the state supported 88 fresh food retail projects, represented more than 5,000 jobs created or retained and improved access to healthy foods for over 400,000 state residents.

We are asking our legislators for $1.3 million for the next two years to get this initiative started. Our hope is that we can also get matching funds from private donors to increase the total HFFI to over $5 million. We have had great support from our legislators on our Commission – Senators Greg Reed and Bobby Singleton and Representatives James Buskey and Connie Rowe. Please be sure to thank these legislators and encourage your local legislators to keep these funds in our budget for Healthy Food Financing as we move through the budget process in the 2017 Legislative Cycle.

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GOVERNMENT RELATIONS

2 0 1 6 : A Y e ar t o F o r g e t

PATRICK MCWHORTER LEGISLATIVE REPRESENTATIVE THE MCWHORTER GROUP

ate the last night of session, but failed to be passed by the House. Governor Bentley has declared prison reform his No. 1 priority for 2017, and he plans to bring that same proposal back. He has said he may call a special session within the regu- lar session to isolate the issue. This whole thing is fraught with politics. Those legislators with prisons in their dis- tricts do not want to lose those jobs. But the biggest concern in Montgomery is the provi- sion to exempt the construction and bond issuance from the state’s bid laws. Corrections experts also had questions about the size of the facilities. And many legislators were skeptical of the Administration’s claims that the bonds would be repaid from savings in staffing and other areas. For our industry, the AGA’s top priority will be passage of legislation that will eliminate our members’ issues with on-premise tasting requirements and allow for tastings in off- premise locations as well as on-premise loca- tions. Senate Rules Chairman Jabo Waggoner will be introducing the bill shortly. We will continue to advocate for funding of the Healthy Food Financing Initiative; work to be sure we are protecting the SNAP program (HB 2 already introduced – prohib- its waivers to work requirement); continue to be involved in the fight for privatization of the Alabama Alcohol Control Board and get the state out of the alcohol business; and, if

Almost everyone in Alabama is glad to have 2016 behind us.

Governor fought all spring and summer over Medicaid funding, finally covering most of the projected shortfall with yet another Band-Aid solution. A lottery proposal made it through both houses, but objections came from all direc- tions and doomed the measure. We will see it again, but with Indian casinos, local gambling interests, and those who oppose gambling for moral reasons, it’s very unlikely a bill will pass. The Medicaid funding issue will likely come up again this year, but the main crisis for 2017 will be prisons. The state faces a possi- ble federal takeover of the system; violence is getting worse and worse; riots at one prison resulted in the stabbing of two corrections officers, and two inmates were killed in 2016. The Governor and his staff proposed an $800 million prison construction package, intend- ing to replace all but two existing prisons with four super prisons – three male pris- ons that would hold up to 4,000 inmates each, and one female prison to hold up to 1,200 inmates.

Almost everyone in Alabama is glad to have 2016 behind us. We saw all three branches of our government disgraced; House Speaker Mike Hubbard was convicted of 12 felony ethics charges and removed from office, Supreme Court Chief Justice Roy Moore was suspended for the remainder of his term for telling Probate Judges to ignore a U.S. Supreme Court rul- ing, and the House started impeachment proceedings against Governor Robert Bent- ley’s activities related to an extramarital affair and his firing of the law enforcement agency. Other than all that, we only had to worry about budgets. The Legislature and the

A scaled-back version made it out of the Sen-

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“with so many agencies starved for new money, we must be ready to fight any new taxes or tax changes that come up.”

a lottery amendment does pass, ensure a fair and adequate commission is paid to retailers on the sale of lottery tickets. Additionally, we will continue to play a sub- stantial role in data breach legislation to be sure anything that passes does not place an undue burden on retailers. A bill passed the Senate last year but failed in the House; we expect to see it again. Tax wise, we expect to again see legisla- tion that would create mandatory unitary combined reporting again in 2017, and we

will oppose coming legislation that attempts to prevent retailers from using an appraising method known as the “Dark Store Property Valuation.” With so many agencies starved for new money, we must be ready to fight any new taxes or tax changes that come up. We will, of course, continue to be vigilant to oppose any effort to pass soft drink taxes. The Joint Task Force on Budget Reform, created during last year’s special session, will make a report at the beginning of the session,

but they have already agreed to continue meeting through 2017. Finally, we already have legislation pre-filed (HB 26 by Rep. Juandalynn Givhan, D-Bir- mingham) to create a state minimum wage at $10.00 per hour, increasing annually by CPI. We will continue to vigorously oppose any legislation of this sort. Please call if you have questions.

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AGA NEWS The Al abama Groce rs Assoc i at i on wishe s to recogni ze it s Di amond and Four St ar Sponsors for t he i r gene rous suppor t of t he AGA Annua l Convent i on . Diamond Sponsors

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INSIDE THE BELTWAY

L o ok i ng ah e ad

JENNIFER HATCHER SENIOR VICE PRESIDENT GOVERNMENT AND PUBLIC AFFAIRS FOOD MARKETING INSTITUTE

Then when CGA or FMI lobbyists reach out to officials in Washington, or Sacramento, it allows us to expand your reach on an ongoing basis.

The elections provide a great opportunity to build relationships with your elected officials.

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With the negativity of this election cycle occupying the Internet, airwaves, and even the streets – it’s easy to move to complacency. Instead of complacency, now is the perfect time to develop and build relationships with the winners of November’s General Election in order to get them to understand your perspective on votes they will take in the city council, county commission, state legislature or Congress. Here are som helpful tips to developing a strong relationship with your elected officials: Send a note congratulating the official on their election or re-election with a brief paragraph about your business. them something new – a new department, a new product, a new section, or a new technology. Discuss issues they might have the opportunity to vote on, or influence with their position (if you need ideas, we are happy to provide them). Introduce them to your associates – especially the store manager. Take photos! 1 2 Schedule an introductory meeting with the elected official in your store, or distribution center. Show

Send the elected official and the staff member who accompanies them a follow-up note, thanking them for

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When you have an “ask,” make sure it’s clear. If you would like them to co-sponsor legislation, sign a letter,

the visit and reiterating those items you discussed at the store.

or vote in favor or against something, make sure it’s clear and has been communicated to them and their office both in writing and verbally. If you are sending a letter or email, make sure the “ask” or request is in the first sentence.

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After there is a vote or hearing on an issue that impacts your business, contact the elected official and

let them know how much you appreciate their understanding of your business. Or, if they didn’t vote your way, let them know you would like to discuss why you, your associates and your customers are on the other side of the issue. Maybe you can get them next time! Always stay positive, even if the vote did not go your way. ■

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Communicate with the official and the staffer every quarter. Let them know about a new department, remodel, new jobs you have created or a new product or a policy issue. Also, ask what issues they are most interested in. Send materials created by your state or national association. This demonstrates the direct link between your business and your state or national association. 4 5

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3600 Vanderbilt Rd., P.O. Box 11044, Birmingham, AL 35202

BudCason ONE SMART COOKIE

Mr. Albert L. “Bud” Cason, founder and chairman of Birmingham based Bud’s Best Cookies will be inducted into the Baking Hall of Fame by the American Society of Baking on February 27 with special ceremonies during BakingTech 2017 in Chicago.

The award was created to recognize indus- try innovation and entrepreneurial spirit. Individuals inducted into the

eral manager of Repco – Bakery Division, Sa- lina, KS. “They represent the best qualities of compassion, forward thinking and personal judgment. The committee feels honored to have looked at their accomplishments. They inspire our future by their experience.” Bud was one of the first cookie producers to recognize the potential of contract manu- facturing. In the 1970s, he saw that large consumer products goods companies were moving out of manufacturing activities to concentrate their resources on marketing. He reinvigorated a modest bakery concern in the Southeast to serve that need. In doing so, he practically invented the category of

hall of fame are selected for their achievements in organizational growth and development, equip- ment design and innovation, advancements in ingredient tech- nology and processing or related service to the commercial baking industry. “The lives and careers of these individuals provide wonderful

examples of excellence and leadership,” said John Del Campo, chair of the A.S.B. Baking Hall of Fame Evaluation Committee and gen-

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“Bud's Best cookies was founded in 1991 by bud Cason and began operations in 1992 in its 130,000 square foot facility in Birmingham.”

mini-cookies by being the first to master the mass production of these bite-size treats, now found at convenience stores all around the country and on Amazon.com. Later, he added full-size cookies and, most recently, wafer products to the product line of his lively business. Bud has been a member of the Alabama Gro- cers Association since 1998 and has always supported the Association with his participa- tion in events and product donations. “We are lucky to have members such as Bud Cason as part of our organization and congratulate him on this outstanding award”, said Ellie Taylor, President of AGA. He is also very active in his community and church and generously supports their causes, charities and initiatives. Bud is a co-founder of the Cookie and Snack Bakers Association (CASBA).the Patrick McRhorterHe serves on the board of the Biscuit & Cracker Manufac- turer’s Association (B&CMA), and he is cur- rently involved in the merger of B&CMA and the America Bakers Association (A.B.A.).

“Since I was 12-years-old working in my aunt’s bakery, I always knew that I wanted to own my own cookie factory,” said Bud. “Being inducted into the Bakers Hall of Fame is such an honor and makes me realize all of my dreams have come to fruition.” Bud’s Best Cookies was founded in 1991 by Bud Cason and began operations in 1992 in its 130,000 square-foot facility in Birming- ham, Alabama. The company manufactures a variety of Bud’s Best bite-sized cookies that are distributed across the country. Bud’s Best Cookies also owns several brands, including Uncle Al’s standard-sized cook- ies, sold at convenient stores; Woopee brand sold exclusively in New York, New Jersey and Philadelphia; and Bud and Al’s Signature line of specialty cookies. For more information, visit the Bud’s Best Cookies website at www. budsbestcookies.com .

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WASHINGTON REPORT

G o od N ews F o r I nd e p e nd e n t s

PETER LARKIN PRESIDENT AND CEO NATIONAL GROCERS ASSOCIATION

The grocery business is not for the faint of heart, due in large part to low profit margins and shifting consumer preferences.

Additional Challenges and Opportunities: Total expenses increased in 2015, driven mainly by labor and benefit costs, which stood above 14 percent of sales, making it the sixth consecutive year the average percentage was above 14 percent. Fiscal year 2015 marked another year of rising healthcare costs as operators saw healthcare costs grow 10.2 percent. With the rising usage of debit and credit cards among shoppers, interchange fees were listed within the top five concerns for independent supermarket operators. Independents adapted their advertising allocation to marketplace demands by shifting funds from printed materials to digital marketing.

These days, the traditional supermarket is undergoing profound change, while also maintaining its place at the heart of the food shopping experience for the vast majority of American consumers. And while the entire food industry is looking to stay ahead of the consumer trend curve, independent supermarket operators are continuing to innovate to meet shifting demands. Despite a tough marketplace, independents grew same-store sales by 2.1 percent – ahead of annualized inflation (1.2%) and well ahead of the prior year’s 1.5 percent gains, according to the results of NGA’s annual “Independent Grocers Financial Survey.” This study, compiled in conjunction with our partner FMS Solutions Holdings LLC, analyzed the financial and operational performance of independent supermarket operators in fiscal year 2015. In addition to benchmarks for financial performance and business strategies, the report provided an in-depth look at the economic, political and competitive landscape in which these retailers operate. Survey respondents represent a wide array of companies throughout the United States and Canada.

Survey “profit leaders” (the top 25% of independents that exceeded three percent in net profits before taxes) outperformed publicly-traded companies by 4.09 percent to 3.52 percent in average net profit before taxes. Interestingly, for the first time in the history of this report, supercenters were not listed as independent's top competitive threat, but instead were replaced by other conventional supermarkets. In a fiercely competitive industry, independents are continuing to differentiate themselves in the marketplace and are doing so with much success. Whether it’s diving into e-commerce platforms, enhancing customer service or increasing focus on the fresh/perishable department, independents are employing tactics to not only meet consumer demand, but become the store of choice. At the 2017 NGA Show, there will be ample opportunities, including a financial benchmarking workshop, to learn how best in class retailers are able to increase their net profits during challenging times. Visit www.theNGAshow.com. ■

Profit leaders focused on operational fundamentals,

including keeping inventory turns high and implementing programs to track and reduce perishable and theft-related shrink.

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VIEWPOINT

Hardba l l R e ta i l L e s s ons

KEVIN COUPE FOUNDER, MORNINGNEWSBEAT.COM

all that sort of stuff. All stuff to get people to the ballpark, to get fannies in the seats. Back in the mid-90s, I interviewed Charlie Dowd, a longtime baseball professional who then was the general manager of the New Haven Ravens. He explained it this way: in minor league baseball, you can't market the players because if they're any good, they're going to “The Show.” So you have to market the experience. Which means you have to make it a differentiated experience. These days, it is even more so. The number of options on which to spend one's entertainment budget are far more numerous, and so major league teams have adopted the minor league approach – lots of promotions that help to entice and entertain the customers. There are young people from the promotion staffs wandering through the stands, doing contests and giving away prizes. There are kids racing mascots down the left field lines.

Visiting every MLB ballpark has taught Me a valuable retailing lesson.

By the way, this doesn't even count all the minor league parks I've been to. (Like where the Utica Blue Sox used to play when they were a Red Sox affiliate. I wish I still had that cap.) I've had a great time visiting all these games and stadiums. I've consumed an amazing number of hot dogs (like Dodger Dogs and Fenway Franks!) and a lot of beer – much of it craft beer, especially lately – over the years, and lately I've tried other foods at ballparks that have improved their culinary offerings. (More on that below.) Which leads me to the business lesson that I've learned during my baseball quest. When I started on this, one of the things I noticed was that minor league fields tended to be a lot more fun than the major league variety. The big league parks tended to be a little more formal, a little more staid. But minor league fields, in addition to being a lot less expensive, also did a lot more

It's taken me almost a quarter-century to do it, but I recently achieved a long-held dream. I have been to a game in every major league baseball stadium in the country. All 30. A guy has to have goals. In fact, I've done more than just go to every major league ballpark. It has taken me so long to achieve this goal that I've actually visited 49 stadiums – 18 of them in cities (Seattle, San Francisco, San Diego, Houston, Cincinnati, St. Louis, Minneapolis, Detroit, Cleveland, Baltimore, Atlanta, Philadelphia, Pittsburgh, Toronto, Chicago, Milwaukee, and two in New York) that have replaced those ballparks with new ones, and one of them in a city – Montreal – that no longer has major league baseball. When I started on this endeavor, I had as an ancillary goal the idea that I would bring back a cap from every ballpark. But my wife nixed that pretty early on; she was willing to tolerate my going off to see a game somewhere, or staying an extra day on a business trip so I could catch a game. But I had to stop bring home all those caps. (I acquiesced. That's how I've stayed married for 33+ years.)

to engage with patrons. There would be ice cream giveaways, dime hot dog nights, handing out of free t-shirts, on-field races for kids –

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VIEWPOINT

(Sometimes there are too many, to be frank. On a Saturday night at the end of the just-ended season, I was in Miami to see the Marlins play; it was the second-to-last ballpark on my list. But the Marlins had a Star Wars promotion that was way, way over the top. It made me want to take a light saber to whatever genius in marketing thought it up.)

I'm happy to say that four of my top-ranked ballparks are on the west coast – AT&T Park in San Francisco, Safeco Field in Seattle, Petco Park in San Diego, and, of course, Dodger Stadium in Los Angeles, which remains one of the best of the lot even though it is the third oldest in the nation.

I'm sorry to report that another west coast

“retailers have to create enticing, engaging and unique experiences that speak to the customer’s interests and desires.”

That's what retailers need to do, now more than ever. They can't just be places that stock other companies' merchandise and promote other companies' brands. They have to create enticing, engaging and unique experiences that speak to the customer's interests and desires. Sometimes, that means having the kind of nimble attitude that characterizes smaller companies. And sometimes it just means being innovative enough to make things fun. Now, before I sign off, I have to answer the question that I've been getting constantly since telling people about my achievement: Which ballparks did I like best? To be honest, I do have biases. I'm partial to craft beer and food that goes beyond the standard hot dogs and peanuts. (I'm big on fish tacos. And the Blue Smoke and Shake Shack stands at Citi Field are a major lure.) I like a little leg room, and I think high- definition displays and great scoreboards are really, really important. (A stadium without an out-of-town scoreboard that lists every game being played in the majors in real time loses points.) I dislike domes and artificial turf, and I like stadiums that one can walk to from downtown. (I also hate the designated hitter rule, but that's not a stadium issue...)

ballpark – the Oakland Coliseum – is my least favorite of the current stadiums. But I suspect that a lot of Athletics fans might agree with me, and yearn for something a little more modern. But here's the thing. Next time you go to game (it could even be football, basketball, hockey or soccer), look around. Ask yourself what the team ownership is doing to make it a unique and differentiated experience even beyond what is happening in the game. And then ask yourself if you are doing everything you can do in your store to make it a compelling experience. It is not like in “Field of Dreams”, where the premise is that "if you build it, they will come." These days, you have to do more. A lot more. You have to come ready to play hardball. ■

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OUTSIDE THE BOX NEW RETAIL PERSPECTIVES

If you’re really interested in the concepts and formats that disrupted the food business, then look beyond the supermarkets to the iconic restaurants that really changed the way people eat. That’s the subject of a new book entitled “Ten Restaurants that Changed America” by Paul Freedman, who readily points out that these may not have been the best restaurants, but certainly the most influential. Who were these influencers? There was the late Howard Johnson’s the “Host of the Highway” which invented standardization and whose orange- tiled roof was a beacon to travelers; Schrafft’s, the choice of budget minded secretaries and stenographers who pioneered the “middle class restaurant experience”; Antoine’s in New Orleans and even chef Alice Waters’ Chez Panisse. Even more fun is looking at some of the menus and prices like 1971’s set menu at Chez Panisse for $3.95 per person, or chateaubriand for two at Le Pavillon for $6 – in 1941. Let’s Eat! iStock

LET’SEAT! Smart Skin Seems everyone loves IKEA meatballs but the Swedish home decor retailer is taking its do-it-yourself ethos into culinary with “The Dining Club” a pop-up restaurant and cooking workshop at its store in Shoreditch, London. Diners build meals by preparing food for groups of up to 20 friends or family. The experimental restaurant openned for two weeks in mid-September and feature a variety of cooking sessions – brunch, lunch, or dinner – where different trained head chefs supervise preparation. If you’re able to snag one of the limited cooking sessions, the food, alcohol, and wait staff is free. iStock

Researchers at MIT have introduced DuoSkin, a smart tattoo printed on gold leaf – fashionable but also able to conduct electricity, which can also be turned into an on-skin interface. Sounds like a new fashion statement, or a great place to put loyalty or credit cards.

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OUTSIDE THE BOX

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If you think you’ve heard the last word about millennials – think again! Iconic cosmetic brand Estee Lauder mentioned the term 19 times in its latest annual report. Recent acquisitions like Glamglow and Smashbox means bumping up marketing efforts. You may be doing the same. Estee Lauder says 60% of its sales come from millennials, much of it at Ulta and Sephora stores. One interesting thing we can learn from this is if you want to capture this group’s attention – Sample!

MILLENNIAL FEVER

SNEAKER

SWAP

Everyone’s heard about the runaway success of the Rent The Runway site for women’s fashions. Now the guys don’t have to feel left out. LSwop, or Luxury Swop, rents European designer sneakers from designers like Tom Ford, Christian Louboutin and Pierre Hardy which typically sell for $800 to $1,000. Pay a monthly subscription and LSwop will rent you sneakers from one to four days. For a mere $150, customers can rent one sneaker monthly, two for $250 and three for $350. Well, they do send them in a wooden shoe box with a free pair of socks!

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Sometimes you’ve got to double down even when the odds are stacked against you. That’s what Under Armour, the sports clothing manufacturer, is doing with the introduction of a high-end apparel line at the recent FashionWeek in New York. It’s a bold move considering fashion collections from competitors Nike, Adidas and Puma were introduced years ago and are firmly entrenched in retail.The line called UAS is aimed at “ambitious Millennials” who may or may not be willing to fork over $1,500 for a trench coat. BETTING THE LINE

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Google and Germany’s highly popular Zalando e-commerce platform, have teamed up on Project Muze that enables users to create their own 3-D fashion designs using artificial intelligence. Rudimentary AI technology is already being used in some areas of retailing. Could this be the next step for supermarkets? Customized 3D foods?

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ivity DRIVES THE NEW SHOPPING EXPERIENCE

ELLIOT ZWIEBACH

Unless supermarkets begin rethinking the way they do business to meet the threat of online competition, they could end up as “Blockbusters in a Netflix world,” according to futurist Douglas Stephens.

The key may be transforming their stores to offer shoppers a value-added experience that goes beyond simply distributing groceries, he said in an interview with Alabama Grocer and in a presentation at a recent grocery strategic conference. Stephens is the founder of Toronto-based Retail Prophet. “Many consumers today view grocery stores simply as warehouses that hold products they need,” Stephens said. “But with online options growing, what’s to prevent the majority of consumers from passing up the supermarket completely by subscribing to AmazonFresh and getting groceries delivered?” With a growing number of online operators offering ever broader shopping options, retailers need to figure out how to create experiences “that are so amazing that people will pay to come to your store,” he said.

Speaking at the conference, Stephen said retailers will have to re-focus their stores to make the trip an experience if they hope to motivate future consumers to make a physical trip to a supermarket rather than ordering online. “Shopping is both a social and physiological experience,” he explained. “Thinking about going shopping (in general) is similar to taking cocaine for many people – it gives them a dopamine rush.” However, the prospect of shopping with online operators who add more products and give consumers more certainty about finding what they want offers less of a rush, Stephens told conference attendees. “When people come to a store to shop, that dopamine effect goes through the roof, which works in your favor,” he said. “In a world where people’s lives are being ruled

by algorithms – where sellers are making suggestions to consumers about what they may want to buy based on previous purchases – consumers can have a burst of exhilaration going into a store and interacting with sales associates. “That doesn’t mean retailers have a free pass,” he added. “While brick-and-mortar stores will continue to exist, everything about that space – and how you think about why people go there to shop – will have to change, and rapidly. “You must look beyond simply selling products in order to create such galvanizing experiences that a consumer won’t think of buying what you offer anywhere else.”

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...the major obstacle to creating the right kind of experience is their obsession with four-wall productivity.

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In his speech, Stephens said retailers will have to shift their thinking beyond being a place to distribute products and focus instead on selling the experience along with the product. “Retail has to become less static,” he said. “The future will be less about dragging things home and more about the value of the experience. “Smart companies will re-deploy employees to become ambassadors – awesome people that add value to the in-store experience as nutritionists, sommeliers or chefs, for example – people who interact one-on-one with customers. People trust other people.” Even millennials, who depend so much on personal devices, “are hungry for physical experiences that do not involve the product itself as much as the brand,” he told conference attendees. Whole Foods’ 365 stores, which are tailored to millennial tastes, “are about the experience,” he pointed out.

For many retailers, however, the major obstacle to creating the right kind of experience is their obsession with four-wall productivity,” which has been the primary operating principle for a century or more, Stephens said. “It’s a hard pill to swallow, but in a world where we can get anything we want with a single click, no one needs what you sell. But what you sell is the only value differentiator left, so you must create a different experience around what you sell by getting innovative, cunning and crafty – not by starting with technology, though leveraging technology could add value to the experience, but by understanding the customer experience in a different, deeper way, then de-constructing that experience.” That may be the only way to meet “the very material threat” posed by Amazon, Stephens said, “but too many retailers will recognize that too late because they are myopically obsessed with the inner workings of the business but unaware or unwilling to see what’s happening outside the walls.

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“They remain doubting Thomases, and as a result, they could eventually be replaced by others more eager to figure out how to move product by adopting new ideas,” he added. According to Stephens, too many retailers are still caught in the mindset that they are there to distribute products, “and any value-added experience is simply sprinkled in like garnish. “They don’t energize consumers to make the trip to the market enticing. But to survive, they’ve got to figure out ways to deal with the threat of online sellers who rely on convenience.” According to Stephens there have always been competitive pressures on the industry, but “Amazon doesn’t care if it makes money or not, and as it continues to grow, it will operate at a loss to put other players out of business.” Most operators still think more laterally, he said. “Even if a retail company increases its selection by 10 percent, that will still be only a small facet of what Amazon is able to offer,” Stephens said. “And even if a retailer can improve service by 20 percent, that still pales versus Amazon’s ability to deliver when the consumer wants when he wants it.” E-commerce is continuing to grow in all businesses, posting sales of $1.6 trillion in 2015, with expectations for long-term, high- volume growth, Stephens told conference attendees, “We’re probably just reaching the end of page 1 and turning to page 2.” Supermarkets stand to lose as much as 30 percent of their business to online sellers by 2025, particularly on high replenishment items like diapers, pet food, baby food, detergent and light bulbs, for example, Stephens said. “It will be a matter of ‘say it and get it.’ When someone wants an item, they will click on a technological device and have it delivered. The question for retailers, then, is how will your store, your chain and your brand be heard?”

The answer is enhancing the in-store experience, Stephens said. “As good as Amazon and the others are, they are still just digital catalogues. As connectivity becomes more important, the future of retail will be more experiential and immersive,” he said. “But the time for retailers to act is soon because there’s a diminishing window of time.” Figuring out ways to make the shopping experience more appealing to prevent shoppers from opting out is not the way most operators think about their businesses today, Stephens said in the interview. But in an industry with profit margins often at or below 1 percent, the challenge of how to generate revenue over and above selling groceries is daunting, he noted. The future may revolve around reassigning floor space, he said.

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“Developing a grocery store that will appeal to future consumers starts with the question, how much space does an operator need to create the kind of experience that’s so compelling and remarkable that people are motivated to return again and again to buy food there?

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“That might mean devoting just 25 percent of space to essential food products and finding ways to devote 75 percent of space to creating amazing food and health experiences,” he said. The traditional ways of thinking about merchandising that worked for decades may no longer be relevant, Stephens added, with supermarkets of the future likely to hold little product while offering new, exciting, customized experiences aimed at meeting specific consumer preferences, he explained. “In a world where home delivery from online businesses is growing, it’s an archaic process for consumers to get into their cars, drive through traffic to a supermarket, handpick items, load them into a cart, unload them at the checkstand, load the bags into a cart and unload them into the car, then unload them again when they get home and put them away,” he said.

other ways to position groceries from a health-and-welfare standpoint or a lifestyle experience,” he said. “For some, the grocery store of the future may be a place for entertainment that creates memorable experiences and builds loyalty and a greater relationship between the supermarket and the public.” One company that’s taken the right steps to meeting the long-term needs of future consumers is Eataly, Stephens noted. “That’s a company that understands that retail as strictly a commodity business is threatened, so it drives its business with spectacular, exciting facilities that combine groceries, restaurants and entertainment. “No one else in the grocery industry that I’m aware of has pressed ahead as much (as Eataly) on this concept that I believe

will be a way to guarantee success going forward. No one else has taken

such dramatic steps to acknowledge experience should come first and products should be a secondary consideration.” According to Stephens, “It starts with designing the experience. Retailers must break down the consumer’s journey to the store to its most granular components and design each aspect as an experience to be savored.” How long it takes for retailers to figure it all will depend on each individual business, he said.

It starts with designing the experience...break down the consumer’s journey to the store to its most granular components and design each aspect as an experience to be savored.

According to Stephens, the only reason future consumers will go through all that is if the retailer isn’t afraid to give them other experience-based options. “What grocers need to consider is how to create incredible expectations for consumers, whether that means offering cooking classes with celebrity chefs, featuring holistic coaches to teach people how to eat better, offering a broader variety of in-store entertainment events or providing

“Every organization should already be working on a prototype within the next year or so,” he recommended. “But the majority of retailers will probably do nothing in the short term, which is just human nature. They will fail to understand that dramatic things are happening and that their business could be in peril, but still they will do nothing other than ignoring what’s coming because

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